Question: Take a look back at the data regarding the inkjet-printer industry in Problem 26-2, and answer the following questions. Problem 26-2 Firm Share of Worldwide

Take a look back at the data regarding the inkjet-printer industry in Problem 26-2, and answer the following questions.
Problem 26-2
Firm Share of Worldwide Market Sales
Brother ........................... 3%
Canon ............................. 17
Dell ................................ 6
Epson .............................. 18
Hewlett-Packard ................. 41
Lexmark ........................... 13
Samsung ........................... 1
Other .............................. 1
a. Suppose that consumer demands for inkjet printers, the prices of which are readily observable in office supply outlets and at Internet sites, are growing at a stable pace. Discuss whether circumstances are favorable to an effort by firms in this industry to form a cartel.
b. If the firms successfully establish a cartel, why will there naturally be pressures for the cartel to break down, either from within or from outside?

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